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Forest, paper industry hit by economic instability
USFilter’s HPD Systems will supply complete system engineering and the main equipment, and will also supervise the assembly and assist with start-up. The equipment includes nine preheat falling film evaporators, a surface condenser, a vacuum system, flash tanks, vapour and liquor recirculating piping, a stripping system, a non condensable gas system, a tank farm, pumps, structure, valves, instruments, electrical material and the motor control centre.
METSO REBUILDS UPM-KYMMENE RAUMA PAPER MACHINE Metso Paper is to rebuild a paper machine at UPMKymmene’s Rauma mill in Finland. The upgrade of the SC paper machine will improve paper quality, machine efficiency and running speed. The rebuilt machine will start up in spring 2004, following a 20 million investment. The PM 2 was originally supplied by Beloit in 1971 and Valmet rebuilt the machine extensively in 1990.
EIB LOAN FOR PAPER PRODUCTION IN SLOVAKIA The European Investment Bank (EIB) has approved a 64 million loan for a significant upgrade and production capacity increase of an existing paper mill at Neusiedler SCP in Ruzomberok, Slovakia. SCP is the largest paper producer in Slovakia and is 50% owned by ECO-Invest, a Slovakian group of investors, and 50% by Austrian based Neusiedler. Meanwhile Metso Paper has announced that it is to
Filtration Industry Analyst
rebuild a pulp and paper mill for SCP by September 2004. Metso Paper’s delivery will include the modernization of the washing and screening systems, as well as of the oxygen delignification and bleaching processes.
METSO EXPANDS IN CHINA Metso Paper has opened a new branch office in Shanghai, China and plans further offices in Guangzhou and Qingdao in order to strengthen the company’s service and presence in the Chinese pulp and paper market. The branch offices, including Metso Paper’s existing office in Beijing, and the Wuxi Service Technology Centre, will form a new company, Metso Paper (China) Co Ltd. Metso and its predecessor companies have delivered papermaking and pulping equipment in China since the 1950s. Today Metso Paper’s equipment and processes run in more than 100 Chinese paper and pulp mills.
FOREST, PAPER INDUSTRY HIT BY ECONOMIC INSTABILITY 2002 proved to be another difficult year for the global forest and paper industry, with stagnant growth, economic instability and oversupply continuing to hamper the industry’s performance. The PricewaterhouseCoopers 2003 Global Forest and Paper Survey, which summarizes the 2002 year-overyear financial information of the PwC Top 100 largest forest and paper companies in the world, found that total industry sales were flat at US$300.7 billion while operating profit was impacted by low prices, falling 13% in 2002 to US$21.6 billion. Net income
in 2002 fell US$3.1 billion, or 50%, to US$3.1 billion. The PwC survey found that the global forest and paper industry delivered a 4.1% return on capital employed in 2002, well below the 10–12% target for the industry. The PwC survey forecasts that global economic conditions will improve towards the end of 2003 and early 2004, allowing for a possible overall global industry improvement next year. A copy of PwC 2003 Global Forest and Paper Survey can be found at www.pwc.com/forestry.
The award follows completion of a feasibility study earlier this year by SNCLavalin and will involve the development of an open pit mine, concentrator, port facilities and supporting infrastructure. Services have already started and are being managed from VBNC’s project office in St John’s, Newfoundland. Construction is currently underway with substantial completion currently scheduled for the end of 2005.
MINING
BABCOCK & WILCOX WINS WASTE-TOENERGY PROJECT
BHP BILLITON INVESTS IN CHILEAN COPPER PROJECT BHP Billiton and its partners have approved the development of the Escondida Norte copper project in northern Chile, as part of Escondida’s operating strategy to maintain copper production capacity in future years. The Escondida Norte open pit will be located 5 kilometres from the existing Escondida mining operations. First copper production from the Norte open pit is scheduled for the fourth quarter of 2005. Total development costs are estimated at US$400 million.
SNC-LAVALIN AWARDED CANADIAN CONTRACT SNC-Lavalin’s BAE-Newplan Group Ltd is to undertake engineering, procurement and construction management services for Voisey’s Bay Nickel Co Ltd’s new mine, concentrator and related facilities complex in Labrador, Canada.
POWER GENERATION
Denmark’s Babcock & Wilcox Vølund ApS is to supply Tekniska Verken AB in Finspång, Sweden with a new 10 MWe waste-to-energy boiler. The new boiler, to be used as a base load-unit at the Finspång station, will burn wood chips, household waste, and other waste fuels. The scope of supply includes the steam generator, related electrical equipment, controls and instrumentation, ash handling systems, and flue gas cleaning equipment. The plant is scheduled to begin operating in the spring of 2004.
FW TO SUPPLY SCR SYSTEMS TO IPL Foster Wheeler Power Group Inc is to supply and install two state-of-the-art selective catalytic reduction (SCR) systems for Indianapolis Power & Light Co’s (IPL) coal-fired Petersburg Generating Station, Units 2 and 3 located in Petersburg, Indiana.
3
MARKET PROSPECTS
July 2003
METSO REBUILDS UPM-KYMMENE RAUMA PAPER MACHINE Metso Paper is to rebuild a paper machine at UPMKymmene’s Rauma mill in Finland. The upgrade of the SC paper machine will improve paper quality, machine efficiency and running speed. The rebuilt machine will start up in spring 2004, following a 20 million investment. The PM 2 was originally supplied by Beloit in 1971 and Valmet rebuilt the machine extensively in 1990.
EIB LOAN FOR PAPER PRODUCTION IN SLOVAKIA The European Investment Bank (EIB) has approved a 64 million loan for a significant upgrade and production capacity increase of an existing paper mill at Neusiedler SCP in Ruzomberok, Slovakia. SCP is the largest paper producer in Slovakia and is 50% owned by ECO-Invest, a Slovakian group of investors, and 50% by Austrian based Neusiedler. Meanwhile Metso Paper has announced that it is to
Filtration Industry Analyst
rebuild a pulp and paper mill for SCP by September 2004. Metso Paper’s delivery will include the modernization of the washing and screening systems, as well as of the oxygen delignification and bleaching processes.
METSO EXPANDS IN CHINA Metso Paper has opened a new branch office in Shanghai, China and plans further offices in Guangzhou and Qingdao in order to strengthen the company’s service and presence in the Chinese pulp and paper market. The branch offices, including Metso Paper’s existing office in Beijing, and the Wuxi Service Technology Centre, will form a new company, Metso Paper (China) Co Ltd. Metso and its predecessor companies have delivered papermaking and pulping equipment in China since the 1950s. Today Metso Paper’s equipment and processes run in more than 100 Chinese paper and pulp mills.
FOREST, PAPER INDUSTRY HIT BY ECONOMIC INSTABILITY 2002 proved to be another difficult year for the global forest and paper industry, with stagnant growth, economic instability and oversupply continuing to hamper the industry’s performance. The PricewaterhouseCoopers 2003 Global Forest and Paper Survey, which summarizes the 2002 year-overyear financial information of the PwC Top 100 largest forest and paper companies in the world, found that total industry sales were flat at US$300.7 billion while operating profit was impacted by low prices, falling 13% in 2002 to US$21.6 billion. Net income
in 2002 fell US$3.1 billion, or 50%, to US$3.1 billion. The PwC survey found that the global forest and paper industry delivered a 4.1% return on capital employed in 2002, well below the 10–12% target for the industry. The PwC survey forecasts that global economic conditions will improve towards the end of 2003 and early 2004, allowing for a possible overall global industry improvement next year. A copy of PwC 2003 Global Forest and Paper Survey can be found at www.pwc.com/forestry.
The award follows completion of a feasibility study earlier this year by SNCLavalin and will involve the development of an open pit mine, concentrator, port facilities and supporting infrastructure. Services have already started and are being managed from VBNC’s project office in St John’s, Newfoundland. Construction is currently underway with substantial completion currently scheduled for the end of 2005.
MINING
BABCOCK & WILCOX WINS WASTE-TOENERGY PROJECT
BHP BILLITON INVESTS IN CHILEAN COPPER PROJECT BHP Billiton and its partners have approved the development of the Escondida Norte copper project in northern Chile, as part of Escondida’s operating strategy to maintain copper production capacity in future years. The Escondida Norte open pit will be located 5 kilometres from the existing Escondida mining operations. First copper production from the Norte open pit is scheduled for the fourth quarter of 2005. Total development costs are estimated at US$400 million.
SNC-LAVALIN AWARDED CANADIAN CONTRACT SNC-Lavalin’s BAE-Newplan Group Ltd is to undertake engineering, procurement and construction management services for Voisey’s Bay Nickel Co Ltd’s new mine, concentrator and related facilities complex in Labrador, Canada.
POWER GENERATION
Denmark’s Babcock & Wilcox Vølund ApS is to supply Tekniska Verken AB in Finspång, Sweden with a new 10 MWe waste-to-energy boiler. The new boiler, to be used as a base load-unit at the Finspång station, will burn wood chips, household waste, and other waste fuels. The scope of supply includes the steam generator, related electrical equipment, controls and instrumentation, ash handling systems, and flue gas cleaning equipment. The plant is scheduled to begin operating in the spring of 2004.
FW TO SUPPLY SCR SYSTEMS TO IPL Foster Wheeler Power Group Inc is to supply and install two state-of-the-art selective catalytic reduction (SCR) systems for Indianapolis Power & Light Co’s (IPL) coal-fired Petersburg Generating Station, Units 2 and 3 located in Petersburg, Indiana.
3
MARKET PROSPECTS
July 2003